In recent years, the logistics and supply chain industry has ushered in many important capital events, with a lot of companies went public in fields like express, supply chain, freight platform, aviation logistics and automatic driving. As a comprehensive fund covering multiple industries and fields, Legend Capital has already made a long-term and systematic investment layout in the field of logistics and supply chain. According to public information, Legend Capital has invested in more than 10 companies in such field, including Milkyway (603713.SH), Eastern Air Logistics (601156.SH), JD Logistics (2618.HK), Hichain Logistics (300873.SZ), China Southern Cargo, FOR-U Smart Freight, SF Freight, SF Intra-city and Yanwen logistics, among which SF Intra-city and Yanwen logistics have filed for IPOs in the Hong Kong and Mainland China, respectively.
Based on nearly a decade of experience, Legend Capital has already built an accomplished framework and investment system in the field of logistics and supply chain. It also divides the business into three stages, and identifies different investment opportunities in each stage.
Stage 1.0 “Logistics”: The essence of this stage is how to transport cargo at low cost and high efficiency based on the needs of consumption or manufacturing industry. In terms of investment in the logistics field, Legend Capital not only pays attention to the incremental market opportunities brought by changes in business flow, scene, technology and policy , but also actively looks for special opportunities such as spin-off, M&A and mixed ownership reform; Stage 2.0 “Supply Chain Service”: On the basis of fulfilling transportation needs , Legend Capital looks for enterprises with intelligent supply chain service that could provide value-added services such as raw material procurement, warehousing, finished product distribution and after-sales, and hence achieve the goal of “full link, agility, efficiency, reliability”; Stage 3.0 is to use the concept of “digital transformation, collaborative delivery and platform development” to build industrial Internet.
With around ten-year-experience, Legend Capital’s investment strategy of logistics and supply chain mainly focuses on the infrastructure related to consumer goods, retail distribution, industrial manufacturing, and medical health.
Unlike other funds and investment institutions, Legend Capital, on the basis of long-term, comprehensive and in-depth research on the industry, selectively invests in excellent companies with huge industry influence. Besides, Legend Capital empowers enterprises by using the ecological resources of investment enterprises and its value-added services. Under the guidance of long-term value, Legend Capital also advocates and promotes the communication and cooperation among its portfolio companies to create more opportunities on win-win cooperation.
Legend Capital thinks highly of bringing long-term value and value-added services to its portfolio companies. Richard Li, the President of Legend Capital, said: “Logistics and supply chain investment has entered the critical period, and there will be more cross-industry investment opportunities. We have a lot of cooperation with leading enterprises in various industries. When opportunities arise, we have enough experience to support them to grow from BU (business unit) to independent company. “
According to Legend Capital, the logistics and supply chain industry has entered a new stage with information technology empowers various industries. Meanwhile, the new market conditions will generate new traffic and new data, which brings new demands for new kind of resource integration and delivery methods.